ESG-related Obligations for SGX-listed companies

Every issuer must publish an annual sustainability report on a comply or explain basis, and in particular,  certain industries are subject to mandatory climate reporting as part of the sustainability report.

According to SGX (Practice Note 7.6),
 last revised on 1 January 2022

2.4 To achieve the additional transparency which encourages efficiency and innovation, SGX-ST requires each issuer to publish an annual sustainability report, describing the primary components on a 'comply or explain' basis, and in relation to the primary component in Listing Rule 711B(1)(aa) where the issuer is in any of the industries identified in paragraph 4.9 of this Guide, on a mandatory basis, in accordance with the Listing Rules. This Guide provides guidance to the issuer on compliance with the requirements under the Listing Rules.

"SGX noted that a majority of respondents agreed that the prioritisation of issuers for mandatory climate-related disclosures should be based on their industry classification, given the greater urgency for issuers in sectors with the highest climate-related risks to conduct climate reporting. SGX also observed that a majority of respondents opined that the prioritisation methodology should be based on the industries identified by the TCFD as most affected by climate change and the transition to a lower-carbon economy ("TCFD-identified Industries").

SGX will thus proceed with a prioritisation based on the TCFD-identified Industries, with the financial industry, the agriculture, food and forest products industry, and the energy industry prioritised for mandatory climate reporting for FY commencing 1 January 2023, and issuers in the remaining TCFD-identified Industries, that is, materials and buildings industry, and transportation industry, prioritised for mandatory climate reporting for FY commencing 1 January 2024. The roadmap has been incorporated in the Sustainability Reporting Guide."
Source: Allen & Gledhill, last revised on 14 January 2022